Financial Risk Management Research Of NEEQ Listed Companies

In recent years,the National Equities Exchange and Quotations(NEEQ)system plays a role as a platform for high-tech SMEs to invest and finance,trying to provide solutions for the financing problems for SMEs.NEEQ system not only provides a channel for circulation of shares of private companies,but also contributes to the improvement of the creditworthiness and corporate governance structure of the NEEQ listed companies.The amount of NEEQ listed companies grows steadily since the system was built.Up to the end of year 2015,5129 private companies have been listed on the NEEQ,which gradually becomes the basis of the stock market and an important part of Chinese multi-level capital market.Based on the research of financial risk management of NEEQ listed companies,many operation problems will be revealed to relative parties.This could compel SMEs to recognize their deficiencies and improve themselves internally.Besides,government should introduce and implement some customized policies to promote the development of SMEs.Thus,unceasingly growing SMEs could reinforce their core competitiveness and play a key role in technological innovation and economic development.Based on the case of Shanghai ZJ Bio-Tech Co.,Ltd,this article analyzed its financial risk management problems before listing on the NEEQ,learnt lessons from the case and put forward some suggestions for the company and other NEEQ listed companies.The first part is introduction,which summarized the background,significance,literature review of domestic and abroad,content and research methods,features and inadequacy of the article.The second part presented relevant theories about financial risks and risk management.The third part described the whole case: introduced the basic information and listing background of Shanghai ZJ Bio-Tech Co.,Ltd.The fourth part is case analysis: firstly,analyzed the financial data and financial index of the company and recognized the financial risks faced with the company from the perspectives of financing,investing and capital recovery.then,analyzed the problems during the financial risk management process of the company and identified the factors that caused such problems from the external environment.The fifth part put forward some suggestions for improving the current situation of financial risk management: government should improve the legal system for the NEEQ market and set up the SME credit evaluation system;the company should improve the financial risk control system by enterprise activities,and strengthen the budget and cost control.The last part made a conclusion and proposed the research prospects from considering the comprehensive factors of MSEs,further provide a reference basis for small and medium-sized enterprises that prepare listing on the NEEQ.